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method of performance appraisal

method of performance appraisal

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Published by: 9250030464 on Mar 07, 2011
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Presented By : Sandhya Madhu


Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development Performance appraisals are regular reviews of employee performance within organizations


Performance appraisal

Evaluating an employee¶s current and/or past performance relative to his or her performance standards.

Performance management

The process employers use to make sure employees are working toward organizational goals.

judge the gap between actual and the desired performance. provide feedback to the employees regarding their past performance.OBJECTIVES OF PERFORMANCE APPRAISAL review the performance . strengthen the relationship and communication between superior ± subordinates and management ± employees. diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. Provide clarity of the expectations Reduce the grievances of the employees .


METHODS OF PERFORMANCE APPRAISAL Essay appraisal Graphic rating scales Field review method Forced choice method Checklists method Critical-incident method Management by objective Ranking method Assessment center method 360 degree method 720 degree method Balance score card .

Managers also provide feedback to the employees and suggest performance improvement plans.FREE ESSAY METHOD It is also called µfree form¶ appraisal method. Usually. The appraiser is required to write an essay or a brief narrative that best describes the performance of the employee being appraised. . the appraiser is asked to describe employee strengths and weaknesses.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Provide opportunity to highlight unique characteristics of the employee being appraised Allows for more flexibility for the rater Most effective when combined with other methods Time consuming Quality of performance appraisal influenced by the writing skills of the manager Trends to be subjective since manager may not focus on relevant aspects of job performance .

In it one of the each person is rated on a continuous scale. industry. These factors are employee characteristics & employee contribution which includes qualities such as initiative. attitude. leadership. cooperativeness. .GRAPHICS RATING SCALE This is the most commonly used method of performance appraisal. dependability.

Graphic Rating Scale with Space for Comments .

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Simple Most widely used Easy to develop Provides numerical score for performance Allows comparison of scores between individuals Each point on the scale may have different meaning for different raters May result in subjectivity .

Subordinate Peers ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Superior Customer Performance Dimension Leadership Interpersonal skill Decision making Technical skill Motivation Communication ^ . and his superiors.FIELD REVIEW METHOD The appraiser goes to the field and obtains the information about work performance of the employee by way of questioning the said individual. his peer group.

Regularity Always regular Inform in advance for delay Never regular emain absent Neither regular nor irregular Most Least . This method uses objective reporting & minimum subjective rating.FORCED-CHOICE METHOD In this ranking method it attempts to correct a rater¶s tendency to give consistently high or consistently low rating to all the employees.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Helps discriminate between good & poor performers Reduces bias & subjectivity More objective Difficult to construct pairs of favourable or unfavourable items .

Contains a list of statements on the basis of which the rater describes job performance . Negative checks are not considered . Checks if behavior is positive or negative to each statement Employee performance rated on the number of positive checks.CHECKLIST METHOD Checklist describing behavior of the employees on job.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Minimizes biases & errors Facilitates comparison of performance between employees Help in identifying training needs of employees Require time & efforts to develop Checklist items have to be changed as the nature of jobs change over time Raters do not know the weights assigned to each statement. creating a barrier to effective performance feedback .

Includes both negative and positive points. .CRITICAL INCIDENT METHOD Continuous appraisal method Supervisor continuously records in a specially designed notebook. Rating on basis of critical events.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Covers the entire appraisal period & therefore guards against errors related to behaviour sampling or focusing on last few weeks of performance only Difficult for the evaluator to observe & note down all instances of favourable & unfavourable employee performance Managers must be trained observers in order to be objective .

6. 5. Performance reviews. 1. 3. 2. Set departmental goals. Set the organization¶s goals.MANAGEMENT BY OBJECTIVE Involves setting specific measurable goals with each employee and then periodically reviewing the progress made. Discuss departmental goals. Provide feedback . Define expected results (set individual goals). 4.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Participative goalsetting enhances employee commitment Ongoing feedback & coaching result in higher motivation Employees know how they are contributing to overall organizational performance Time-consuming Superior & subordinate ma y collude to set easy targets Fail in an autocratic system May lead to emphasis on short-term objectives .

This method requires the manager to rank or list all employees from highest to lowest on a trait or dimension of performance. In this judgment is simpler than the ordinary ranking method. It is two types such as Alteration method :In this system supervisor indicia list of all employees then he select the best performance number ± 1 and the worst performance number ± n. Paired comparison method: In this each employee is compared every trait all other persons in pairs one at a time. .RANKING METHOD 1. and the worst no (n-1). 2. then the second best number.

RANKING METHOD Ranking employees from best to worst on a particular trait. choosing highest. then lowest. until all are ranked .

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVA NTAGES Simple and uncomplicated Best result Motivation Size of difference between two ranks is not well-defined Difficult to use with large group of employee Employee¶s rank is relative to others with whom he/she is compared .

‡ planning and organizing capabilities. ‡career orientation etc. The trained evaluators observe and evaluate employees as they perform the assigned jobs. The major competencies that are judged in assessment centers are² ‡ interpersonal skills. . assignments being given to a group of employees Assignment similar to the job expected.ASSESSMENT CENTER METHOD Use of methods like social/informal events. ‡ motivation. ‡ intellectual capability. tests and exercises.

predictor Multiple uses More information for decision making equire expertise to develop Development time can be lengthy equires higher rate of participation Time consuming Cost more Involves more people equires more room for administration .ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Comprehensive evaluation Valid. better.

Example of company use 360 degree method Wipro Infosys eliance Maruti industries HCL technologies . and their performance and development needs.360 DEGREE PERFORMANCE 360-degree Appraisal METHOD is an assessment process used to improve managerial effectiveness by providing the manager with a more complete assessment of their effectiveness.

360 DEGREE PERFORMANCE superior Suppliers / vendors customers employee Team members subordina te Peers .

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Applying this valuable information. The organization can develop appropriate skills to consistently reflect company values Poor implementation of 360 tool negatively effects motivation Use of the feedback as stand alone without follow-up Feedback not linked to organizational goal or value . they can take steps to continuously improve their effectiveness on the job.

to provide the employee with an all round assessment of his or her on the job performance. the 720 degree performance appraisal gives an employee more than feedback from one person. This appraisal gives the employee a lot of feedback generally from anywhere from 5 to 8 people. 720 degree as the name suggests is 360 degree twice It provide for two round of feedback (a pre and post ) or a feedback approach which is done again after nine to twelve months. .720 DEGREE PERFORMANCE APPRAISAL Considered an ³all-round´ appraisal.

b.c. . not good. poor or rate out of 5 to 10.d or excellent .720 CANTAINS Key skill/capability type Skill component/element Question number (purely for reference and ease of analysis) Specific feedback questions Tick box and grade box (ideally a.good.

ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES Improved feedback from more sources Team development Personal & organizational performance development Training need assessment Improve customer service Exceptional expectation for the process Insufficient information Design process downfalls Failure to connect the process Focus on negative & weakness .

. government.BALANCE SCORECARD METHOD The balance scorecard is a planning and management system that is used extensively in business and industry. improve internal and external communication. and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization. & monitor organization performance against strategic goal.

FOUR PERSPECTIVES OF BSC Financial Customer Internal Business processes Learning and Growth .

In the from of metrics. To determined the health of stakeholder. . To match with desired outcomes. Forethought Information is limited in scorecard.ADVANTAGES & DISADVANTAGES ADVANTAGES DISADVANTAGES To measure company¶s performance.

PROBLEMS IN PERFORMANCE APPRAISAL Error of central tendency. Leniency and strictness biases Personal prejudice. Recency effect Primacy effect /first impression Stereotyping Sampling error Lack of rater preparedness .

Have raters compile positive and negative critical incidents as they occur. Train supervisors to reduce rating errors such as halo.HOW TO AVOID APPRAISAL PROBLEMS Understand the potential problems. . and central tendency. Each tool has its own pros and cons. and solutions Use the right appraisal tool. leniency.


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